Initially scheduled for consideration on Jan. 12 by Denton City Council members, discussion of the proposed sale of Gibbons Creek Steam Electric Station has been moved to Tuesday.
Mayor Gerard Hudspeth said he could not explain the scheduling change.
The Texas Municipal Power Agency this month approved an asset purchase agreement in the sale of a coal plant owned by Denton and other cities.
In September, TMPA announced its intent to sell much of the Gibbons Creek Steam Electric Station to Gibbons Creek Environmental Redevelopment Group, a subsidiary of Charah Solutions. It will assume control of the offline power plant, cooling reservoir, associated landfills and ash ponds located about 20 miles east of College Station. The sale does not include the mine and transmission system.
Before TMPA can close on the sale, it must be approved by each of its community members — Denton, Greenville, Bryan and Garland.
TMPA, created in 1975, has for years unsuccessfully negotiated the sale of the plant. But it appears to be getting closer to a deal with the buyer, which plans to decommission the property in a move that would save Denton about $14 million over five years, according to a city staff report released Friday.
The Denton Record-Chronicle reported in June that officials with Denton and the other member cities thought they had a buyer for the plant. But that deal fell apart.
Four years earlier, Denton Municipal Electric announced it wanted to end its involvement in the coal-fired operation by summer 2018. Denton and the other cities were unable to sell the plant, and they delayed decommissioning for at least two more years.
Denton City Council members are expected to vote on an ordinance on the purchase agreement on Jan. 26, one day after members of the city’s Public Utilities Board consider a recommendation on the agreement.
The plant, which began operating in 1983, is on 6,170 acres. The purchase agreement provides that GCERG will make an initial payment of more than $6 million to TMPA, an escrow payment of $28.5 million and a $1.1 million performance bond.
According to Charah’s website, the Gibbons Creek Reservoir RV Park and campground will remain open.
The work session is set for 3 p.m. Tuesday, followed by the meeting at 6:30.